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Business Solutions
- Vendor Managed Inventory (VMI)
- Cost of Possession
- Excess Inventory Management
- First Stage Processing
- Global Inventory Management
- Guaranteed Volume with Price Stability
- Just-in-Time Inventory
- Lead Time Management
- Long Term Pricing - Price Stability
- Research and Development
- Scrap Reclamation
- Toll Processing
- Total Project Solutions
Business Solutions
In addition to offering raw material and value added services, Titanium Industries also provides Business Solutions to problems and concerns that companies face on a daily basis. The idea behind these Business Solutions is for Titanium Industries to partner with our customers to ultimately offer ways for our customers to reduce costs, reduce lead times, and receive quality products.
Cost of Possession
There are 16 hidden cost factors associated with a company's inventory value. What are these 16 elements? They can be broken into 5 basic categories: Housing Costs, Capital Costs, Scrap Costs, Equipment Costs, and Manpower Costs. The 16 elements are outlined below:
Housing Costs
1. Building Depreciation
2. Building Operating Costs
3. Taxes
4. Insurance
Capital Costs
5. Cost of Borrowing
6. Inventory Taxes
7. Inventory Insurance
8. Material Obsolescence
Scrap Costs
9. Scrap Loss
Equipment Costs
10. Materials Handling Equipment Depreciation
11. Pre-production Processing Equipment Depreciation
12. Electric Power and Special Supplies
Manpower Costs
14. Labor (receiving and stacking)
15. Labor (moving metals to processing area)
16. Labor (pre-production processing)
Depending on interest rates, building size and space efficiencies, utilities costs, inventory level, and labor rates, these 16 "hidden" costs could range from 20% to 45% of your inventory value.
In light of the above calculation, doesn't it make sense for Titanium Industries to provide you with material Just-in-Time, or as an added value product like cut to length pieces? We challenge you to do the math and you will see that there is no doubt that letting us handle and manage your inventory, and letting us provide you with an added value product will generate double digit savings. Please contact us for a discussion about your hidden costs.
